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Italy was a highly centralized country at least until the 1980’s. After the Unification of Italy was completed by Piemonte, the central government has always been reluctant to give too much autonomy in the field of legislation, administration and finance to regional and local governments. Inhibition of local innovation, constriction of scope for elected local government to play the role of community leader, limitation of local priority and maintenance of uniform service levels for key services are just among of the effects produced by the centralized model. Italy started fostering the process that transfers powers from the central government to local authorities(regions, provinces and municipals) since 1990’s. These are acknowledged by the Constitution which was approved in 2001. With the principle of subsidiarity, the need to replace the word ‘government’ which was unable to respond such heterogeneous and polycentric reality with the new ‘governance’ stresses the need to interact with different levels of government that insect and often overlap. But the decentralization arises new challenges for the central government, especially when it comes to economic and social disparities existing between different territories such as the South and the North. Indeed, it is still a central government commitment to assure that regional gaps are not widened, and resources are available for the less developed regions.